Tax planning is an activity that is best pursued year-round. MLZ Tax Consultants continuously monitors federal, state and local tax law changes to allow our clients to minimize current and future tax liabilities. We offer fullrange tax planning, preparation and compliance services.
A core specialty is the preparation of tax returns for individual taxpayers. Over the years literally 1000's of Federal and State returns have been prepared and filed.
Tax planning and tax forecasting services for individual and small business clients is a core competency of the firm. Effective tax minimization begins with long-term tax strategizing to establish overall objectives and is maintained with conscientious and consistent annual tax forecasting and mid-year tax planning. Our Firm continuously monitors federal, state and local tax law changes to allow our clients to minimize current and future tax liabilities. If necessary, we can implement tailor-made due date tax compliance monitoring systems to prevent costly interest and penalty assessments attributable to late filing.
Annuities are designed to give savers a long-term growth and retirement planning vehicle. They offer many benefits including both tax deferral and retirement income. Features of an Annuity:Tax deferral Retirement income through systematic payouts, including lifetime guaranteed income options from annuitization Variety of payout options Penalty-free withdrawals (available through most contracts) The potential to avoid probate at death Surrender charges An IRS excise tax for most withdrawals taken prior to age 59 1/2. There are two broad categories of Annuities Fixed and Variable Annuities. The following section explains the main differences between these two categories.
Declare a current interest rate, participation rate, and/or index margin Guarantee a minimum rate of return Guarantee a return of principal if held to term Regulated as an insurance contractNo securities license is needed to sell Includes Index Annuities
Separate account returns are based on market performance Investor bears the market risk Prior earnings and principal are subject to loss Regulated as a security and an insurance contractSecurities license is necessary to sell. Fixed Annuities include both Traditional Fixed Annuities and Index Annuities. Because Index Annuities include similar guarantees as a Traditional Fixed Annuity, they are not considered a variable product, and therefore a securities license is not necessary to sell them. The main difference between a Traditional Fixed Annuity and an Index Annuity is that an Index Annuity's interest earnings are based on the performance of an external Index, and the Index accounts do not include a declared interest rate. Index Annuities Features Excess interest based on Index performance Do not include a declared interest rate (Index Account crediting method only)
Determining Your Life Insurance Coverage Needs
Like auto insurance coverage, it is sometimes difficult to see the true value of life insurance coverage until you actually need it. In the meantime, the only way you will feel comfortable with your life insurance policy is if you understand, and agree with, the reasons you bought it in the first place. There are many reasons for an individual to own life insurance coverage. Perhaps the most compelling reason is to purchase a death benefit which will provide for the financial needs of their survivors.
Determining how much life insurance coverage you need is a four step process:
1. Determine total short term needs in the event of your untimely death
2. Determine total long term needs in the event of your untimely death
3. Determine total resources available to family members
4. Provide insurance coverage for any remaining shortfall
Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice.
Permanent, or cash-value, life insurance accounts for roughly 80 percent of all individual life insurance policies. This popularity may exist because cash-value insurance offers a wealth of advantages to the living. Life insurance can be an important part of a financial plan. It provides financial protection to surviving family members in the event that something happens to the insured. In the case of a business, life insurance can help the business to continue if the owner's death triggers estate taxes or other liabilities. Of course, these objectives can be accomplished with either term or cash-value life insurance. But consider how cash-value life insurance can be useful during the insured's lifetime.
PROTECTION FROM INCREASING PREMIUMS
Permanent life insurance has two parts. It has a savings element that accumulates cash value over time, and it offers a death benefit when the insured dies. For a young person, term insurance is usually less expensive, but policies become more expensive as the insured ages and have no value if they expire before the insured dies. A cash-value policy is generally more expensive in the early years, but the premium amount can be fixed for the lifetime of the insured. This means it can potentially become less expensive than term insurance later in life. Because the policy is permanent, medical examinations are not required after the policy is in place.
POTENTIAL FOR CASH ACCUMULATION
The cash value in a permanent life insurance policy has the potential to accumulate over time. Any earnings accumulate tax deferred. This cash value can be withdrawn during the insured's lifetime to be used as desired. It can be a source of retirement income, used to pay for long-term care or a child's college tuition, or held in reserve for emergency expenses.
BORROW FROM YOURSELF
Loans can also be made against a policy's cash value. The interest rate will vary but usually has the potential to be lower than what lending institutions would charge. If the insured dies before the loan is repaid, the balance typically is deducted from the death benefit.It's often said that life insurance is for the living, but this usually refers to the survivors. Cash-value life insurance has the potential to benefit the insured and his or her survivors.
1) Life Insurers Fact Book 2001, American Council of Life Insurers
2) The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable by having the policy approved.
3) As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications.
4) The guarantees provided by the insurance company are contingent on the claims-paying ability of the issuing company.
Total payroll services for small business clients have been provided for many years. Services include: Set up and maintenance of all records, time card tabulations, withholdings of tax and benefit contributions, Federal and State tax filings, issuance of checks and preparation of all W-2's and 1099 forms.Click Here to see how it works
P.O. Box 16697, Chicago, IL 60616